Litecoin turns bearish post halving: What’s going on?
- After an increase, LTC’s hashrate started to decline.
- LTC was down by more than 8% in the last seven days, and the trend might continue.
All eyes were on Litecoin [LTC] on 2 August as it completed its halving process. The third edition of LTC’s halving took place when the network reached a block height of 2,520,000, which reduced miners’ rewards from 12.5 LTC to 6.25 LTC.
Read Litecoin’s [LTC] Price Prediction 2023-24
Even though this was a major development. Litecoin’s price did not have a positive reaction. It was also interesting to note that after a short surge, the blockchain’s hashrate also plummeted.
Litecoin’s halving and the aftermath
Litecoin’s previous halving occurred in 2019, with the next one scheduled to take place in 2027. Thanks to the latest halving, the blockchain’s social metrics soared. Notably, Litecoin’s social dominance spiked. Positive sentiment around the coin also registered an uptick.
Coinwarz’ chart revealed that during the event, LTC’s hashrate also shot up. However, the uptrend was short-lived, as the graph declined later. At the time of this publication, Litecoin had a hashrate of 749.69 TH/s.
It was interesting to see that despite a drop in hashrate, LTC’s mining difficulty rose After a drop, miners’ fees also gained upward momentum, which looked optimistic for the mining industry.
Litecoin’s network activity also remained at par, as evident from Santiment’s chart. The blockchain’s daily active addresses remained high. The altcoin’s transaction count was also up, suggesting increased usage.
However, its daily on-chain transaction volume in profit declined slightly, which could be attributed to its bearish price action.
Investors seem unhappy
The halving did not have a positive impact on the coin’s price action as it continued to remain under the bears’ influence. According to CoinMarketCap, LTC was down by over 5% and 8% in the last 24 hours and past week, respectively. At press time, it was trading at $83.06 with a market capitalization of over $6 billion.
Coinglass’s data revealed that the declining price trend might continue as LTC’s open interest was high. Shan Belew, a popular crypto influencer, pointed out in a tweet that LTC’s price action was mimicking its 2015-17 trajectory.
Litecoin’s price action is similar to 2015-2017. The gray cloud is the network value model. Litecoin’s fair value based on this is today is $1456.
Expect this to rise into the next bull market in 2025. Meanwhile accumulate, spend and replace, and tell a friend about Litecoin as… pic.twitter.com/sQUVVkZDJc
— Shan Belew Ⓜ️? (@MASTERBTCLTC) August 3, 2023
How much are 1,10,100 LTCs worth today?
If history is to be considered, the press time market condition is a great opportunity for accumulation. Interestingly, an accumulation trend was noted among addresses having 0–10 LTC, as evident from the rise in the graph.
However, the big players did not seem to increase their holdings, as their graphs remained relatively flat.